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Session: 1,2,3 Subject: Merchandising Content: Fundamentals of Fashion Merchandising, Types of merchandising-Retail, Export and Buying House

Jagriti Mishra, NIFT, Gandhinagar

Merchandising
• The methods, practices, and operations used to promote and sustain certain categories of commercial activity. • Merchandise management - Analysis, planning, acquisition, handling, and control of the merchandise investments

Merchandiser
• Merchandisers work very closely with Buyers and determine range of goods to be sold • When to buy them • Their price • How they will be presented • Merchandiser responsible for range of merchandise, content, price • Merchandiser could be responsible for promotion, display, sales forecast and stock levels

- A Supply Chain consists of :
Supplier Manufacturer Distributor Retailer Customer

- Aims to Match Supply and Demand, profitably for products & services

SUPPLY SIDE

DEMAND SIDE

- Achieves

The right

+ + +
The right The right

The right

+

The right

+

The right

=

Higher

Product

Price

Store

Quantity

Customer

Time

Profits

Plan

Source

Make

Deliver

Buy

Suppliers

Manufacturers

Warehouses & Distribution Centers

Customers

Material Costs

Transportation Costs

Transportation Costs

Manufacturing Costs

Transportation Inventory Costs Costs

Functions of an export merchandiser
• Coordination with factories and buyers • Updates on colors, fabrics, and styling for the forthcoming season • New product development • Costing and pricing of merchandise • Order booking • Working on submits such as yarns/ lab dips, bulk fabrics, fit samples, pre-production samples • Quality checks and production supervision • Pilot run • Production follow- up • Ensuring timely delivery

Buying House Merchandising
• Buying house work as intermediaries the buyer & the vendor • 60 -70% world wide buying routes through the buying houses • These are situated predominantly at the sourcing locations • Works on profit percentages / commissions / expense coverage

Role of Merchandiser (Buying House)
• Bridges the gap between buyer & vendor • Analysis of market / vendor / order processing / QA • Group buying • Wholesale • Unit control • Foreign buying • Sales promotion – buyer / vendor & development of catalogues • Fashion divisions /offices

Buyer
• Buyer - Brand • GAP, NIKE, Adidas etc. • Most of the brands in the world go for the outsourcing of their merchandise • All these buyers work through their local office known as Liaison Office • Further, all the Liaison Offices works under the Head Office

Retail Merchandising
• Work closely with Buyers to determine ranges of goods when to buy, price and how presented • Produce financial plans on a seasonal basis: – Sales and stock level – Gross/net margins – Gross profit – Space planning – Mark up/downs • Monitoring the performance of these measurable targets on a weekly basis • Working within the buying team ensuring suppliers deliver on time • Monitoring the allocation & distribution of stock

Retail Merchandiser
• • • • • • • • Buying Selling Transportation Warehousing of merchandise Produce current sales figures Sales History Reports Produce Forward Estimates Visit Supplier Base and Warehouses Determine a strategy with the Category or Merchandise Manager • Plan the size of the “BUY” • Monitor stock management & allocation to stores • Work closely with retail buyers in forecasting stock requirements and mark down decisions

Retail Buyers
• • • • • • • • • • • • Operate with combination of buying and merchandising teams Buyers responsible for the product selection Merchandisers responsible for planning and financial control Ensuring purchase order raised to budgets Ensuring orders from factories arrive on time Taking initial brief from customer via buyer for the season Negotiating cost prices with factories Negotiating on cost to customer i.e. selling price Approving pre-production samples Organizing shipping documents Monitoring pre-production Stock control

Skills required of a merchandiser
• • • • • Decisiveness Excellent communication skills Negotiation skills Analytical skills Numerical skills